While the price point for an "affordable" Tesla hasn't been revealed, Musk has long talked about an affordable EV for around $25,000, which would be roughly half the price of the current Tesla Model Y. The company may be hoping that a cheaper Tesla would help the company boost sales during a difficult time period.

The first examples of the more affordable sibling to the Tesla Model Y SUV – reportedly 20 per cent cheaper to build – have been delayed, it has been claimed. Plans for a cheaper and smaller version of the Tesla Model Y electric SUV – as the company's long-awaited more affordable model – have hit a speed bump, according to a new report.

Tesla has reportedly delayed the launch of new low-cost model by months, pushing the vehicle's mass production to late 2025 at the earliest.